Apple hikes iPhone prices by 5% due to increase in GST

The government last month increased GST on smartphones to 18% from 12% earlier, while in the Budget it increased net import duty by 2% by withdrawing the exemption on social welfare surcharge which was earlier available on the basic custom duty on mobile phones.

Kolkata: Apple has increased price of iPhones in India twice in two months, first due to increase in custom duty and then due to increase in goods and services tax (GST).

The US-based iconic smartphone maker on Wednesday hiked iPhone prices by over 5% whereby the entry model is now priced above Rs 30,000.

The government last month increased GST on smartphones to 18% from 12% earlier, while in the Budget it increased net import duty by 2% by withdrawing the exemption on social welfare surcharge which was earlier available on the basic custom duty on mobile phones. The surcharge is calculated at 10% of the basic custom duty which is 20% for smartphones. Apple had hiked prices for the duty hike in March.

Another super premium model, iPhone 11 Pro 64 GB has gone up from Rs 1,01,200 to Rs 1,06,600. The same model was sold at Rs 99,900 till February.

While the locally assembled iPhone XR and iPhone 7 escaped the hike last month, their prices too have gone up from Wednesday. iPhone XR 64 GB is going to cost Rs 52,500 from Rs 49,900 earlier, while the entry iPhone 7 32GB price has gone up to Rs 31,500 from Rs 29,900 earlier.